Bihar combined Entrance competitive Examination Board, Patna V. ACIT(Exemptions Circle), Patna

ITA 25/PAT/2018

• Counselvise Citation: [2022] 105 COUNSELVISE.COM (IT) 0449 (ITAT-PATNA)
• Duration Of Justice: 4 year(s) 4 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-06-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2014-2015
• Appeal Filed On: 11-02-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

ITA Nos. 25/PAT/2018 A.Y. 2014-2015 & ITA Nos. 26/PAT/2018 A.Y. 2009-2010 Bihar Combined Entrance Competitive Examination Board, Patna 1 IN THE INCOME TAX APPELLATE TRIBUNAL, ‘PATNA’ BENCH, KOLKATA [VIRTUAL COURT HEARING AT KOLKATA] Shri Sanjay Garg, Judicial Member & Shri Rajesh Kumar, Accountant Member I.T.A. Nos. 25 & 26/PAT/2018 Assessment Years: 2014-2015 & 2009-2010 Bihar Combined Entrance Competitive Examination Board,.....Appellant IAS Bhawan, Near Airport, Patna-800014 [PAN:AAAJT2383F] -Vs.- Assistant Commissioner of Income Tax (Exemptions),............Respondent Patna Appearances by: Shri D.V. Pathy, Advocate, appeared on behalf of the assessee Shri Rupesh Agrawal, Sr. D.R., appeared on behalf of the Revenue D a t e o f c o n c l u d i n g t h e h e a r i n g : J u n e 0 8 , 2 0 2 2 D a t e o f p r o n o u n c i n g t h e o r d e r : J u n e 1 3 , 2 0 2 2 O R D E R Per Sanjay Garg, Judicial Member:- T h e s e t w o a p p e a l s f i l e d b y t h e a s s e s s e e a r e d i r e c te d a g a i n s t t w o s e p a r a t e o r d e r s b o t h d a t e d 2 7 . 1 1 . 2 0 1 7 p a s s e d b y t h e l d . C o m m i s s i o n e r o f I n c o m e T a x ( A p p e a l s ) - 1 , P a t n a f o r A . Y s . 2 0 1 4 - 1 5 a n d 2 0 0 9 - 1 0 a n d s i n c e i d e n t i c a l i s s u e s a r e i n v o l v e d t h e r e i n , t h e s a m e h a ve b e e n h e a r d t o g e t h e r a n d a r e b e i n g d i s p o s e d o f b y a s i n g l e c o n s o l i d a t e d o r d e r f o r t h e s a k e o f c o n v e n i e n c e . ITA Nos. 25/PAT/2018 A.Y. 2014-2015 & ITA Nos. 26/PAT/2018 A.Y. 2009-2010 Bihar Combined Entrance Competitive Examination Board, Patna 2 2 . B r i e f f a c t s o f t h e c a s e a r e t h a t t h e a s s e s s e e i s a B o a r d c o n s t i t u t e d u n d e r t h e B i h a r C o m b i n e d E n t r a n c e C o m p e t i t i v e E x a m in a t i o n A c t , 1 9 9 5 t o p r o v i d e f o r c o m b i n e d c o m p e t i t i v e e x a m i n a t i o n f o r e nt r a n c e i n G r a d u a t e L e v e l V o c a t i o n a l C o u r s e s o f t h e U n i v e r s i t i e s , C o l l eg e s , I n s t i t u t i o n s i n t h e S t a t e . T h e e x a m i n a t i o n s c o n d u c t e d b y t h e a s s e s s e e ar e f o r a d m i s s i o n t o G r a d u a t e a n d P o s t - G r a d u a t e C o u r s e s o f d i f f e r e n t f a cu l t i e s o f M e d i c a l , E n g i n e e r i n g a n d P o l y t e c h n i c C o u r s e s e t c . T h e a s s e s se e h a s f i l e d i t s r e t u r n s h o w i n g a t o t a l i n c o m e a t R s . ‘ N I L ’ a g a i n s t w h i c h th e a s s e s s m e n t h a s b e e n c o m p l e t e d a t a t o t a l i n c o m e o f R s . 8 , 6 4 , 2 8 , 9 9 6 / - . I n m a k i n g t h e a s s e s s m e n t , t h e l d . A s s e s s i n g O f f i c e r b r o u g h t t o t ax t h e s u r p l u s o f i n c o m e o v e r e x p e n d i t u r e a s s h o w n i n t h e I n c o m e a n d E x p e n d it u r e A c c o u n t . T h e a s s e s s e e i n i t s r e t u r n h a s c l a i m e d e x e m p t i o n i n r e sp e c t o f i t s t o t a l i n c o m e u n d e r s e c t i o n 1 0 ( 2 3 C ) ( i i i a b ) o f t h e A c t o n t h e g r o un d s t h a t i t i s c o n s t i t u t e d a n d s u b s t a n t i a l l y f i n a n c e d b y t h e G o v e rn m e n t . T h e a s s e s s e e a l s o c l a i m e d e x e m p t i o n u n d e r s e c t i o n 1 0 ( 2 3 C ) ( i i i a d ) o f t h e A c t . T h e c l a i m o f e x e m p t i o n h a s , h o w e v e r , b e e n d i s a l l o w e d o n t h e gr o u n d inter alia t h a t t h e a s s e s s e e i s n o t w h o l l y a n d s u b s t a n t i a l l y f i n a n ce d b y t h e G o v e r n m e n t a n d i s a l s o n o t i n v o l v e d i n e d u c a t i o n a l a c t i v i t i e s . T h e l d . A s s e s s i n g O f f i c e r a l s o d i s a l l o w e d p a y m e n t s m a d e t o p r i n t e r a m o u n t i n g t o R s . 2 , 8 5 , 8 5 , 3 9 5 / - u n d e r s e c t i o n 4 0 ( a ) ( i a ) o f t h e I n c o m e T a x A c t ( h e r ei n a f t e r c a l l e d t h e ‘ A c t ” ) . T h e d i s a l l o w a n c e s o f p a y m e n t s t o p r i n t e r f or p r i n t i n g o f e x a m i n a t i o n q u e s t i o n p a p e r s h a s b e e n m a d e o n t h e g ro u n d t h a t t h e a s s e s s e e h a s f i l e d t o d e d u c t t a x a t s o u r c e o n p a y m en t m a d e f o r p r i n t i n g o f e x a m i n a t i o n q u e s t i o n p a p e r s . T h e l d . A s s e s s i n g Of f i c e r a l s o m e n t i o n s t h a t t h e r e i s n o p r o v i s i o n i n t h e A c t , w h i c h p e r m i t a l l o w a n c e o f e x p e n d i t u r e i n c e r t a i n c o n t i n g e n t c i r c u m s t a n c e s w h er e t a x a t s o u r c e i s n o t d e d u c t e d . ITA Nos. 25/PAT/2018 A.Y. 2014-2015 & ITA Nos. 26/PAT/2018 A.Y. 2009-2010 Bihar Combined Entrance Competitive Examination Board, Patna 3 3 . B e i n g a g g r i e v e d b y t h e a f o r e s a i d o r d e r o f t h e l d. A s s e s s i n g O f f i c e r , t h e a s s e s s e e p r e f e r r e d a p p e a l s b e f o r e t h e l d . C I T ( Ap p e a l s ) , h o w e v e r , r e m a i n e d u n s u c c e s s f u l . 4 . B e i n g a g g r i e v e d , t h e a s s e s s e e h a s c o m e i n a p p e a ls b e f o r e u s . 5 . A t t h e o u t s e t , t h e l d . c o u n s e l f o r t h e a s s e s s e e h a s b r o u g h t t o o u r a t t e n t i o n t h a t t h e a s s e s s e e e a r l i e r h a d f i l e d s e p a ra t e a p p l i c a t i o n s f o r e x e m p t i o n u n d e r s e c t i o n 1 0 ( 2 3 C ) o f t h e I n c o m e T a x Ac t , w h i c h w e r e r e j e c t e d b y t h e l d . C I T ( E x e m p t i o n ) . T h e a s s e s s e e p re f e r r e d a p p e a l a g a i n s t t h e s a i d o r d e r s b e f o r e t h e H o n ’ b l e H i g h C o u r t , w h e re u p o n t h e H o n ’ b l e H i g h C o u r t v i d e i t s o r d e r d a t e d 0 3 . 1 2 . 2 0 2 0 r e m a n d e d t h e m a t t e r b a c k t o t h e l d . C I T ( E x e m p t i o n ) f o r c o n s i d e r a t i o n a f r e s h . T he l d . c o u n s e l f o r t h e a s s e s s e e h a s f u r t h e r b r o u g h t t o o u r a t t e n t i o n t o t he o r d e r d a t e d 3 0 . 0 3 . 2 0 2 1 o f t h e l d . C I T ( E x e m p t i o n ) , w h e r e b y , t h e a p p l i c a t i o n o f t h e a s s e s s e e f o r g r a n t o f e x e m p t i o n u n d e r s e c t i o n 1 0 ( 2 3C ( v i ) h a s b e e n a l l o w e d f o r a s s e s s m e n t y e a r 2 0 0 4 - 0 5 t o a s s e s s m e n t ye a r 2 0 1 0 - 1 1 . L d . C o u n s e l h a s f u r t h e r b r o u g h t t o o u r a t t e n t i o n t o t h e o r d e r d a t e d 2 7 . 0 3 . 2 0 2 2 o f l d . C I T ( E x e m p t i o n ) , w h e r e b y , t h e l d . C I T ( E x e m p t i o n ) f o l l o w i n g t h e d i r e c t i o n o f t h e H o n ’ b l e H i g h C o u r t ha s g r a n t e d e x e m p t i o n t o t h e a s s e s s e e u n d e r s e c t i o n 1 0 ( 2 3 C ) ( v i ) f o r t h e as s e s s m e n t y e a r 2 0 1 4 - 1 5 a l s o i . e . f o r t h e a s s e s s m e n t y e a r u n d e r c o n s i d e ra t i o n . S i n c e t h e a p p l i c a t i o n o f t h e a s s e s s e e f o r e x e m p t i o n u n d e r s e ct i o n 1 0 ( 2 3 C ) ( v i ) h a s a l r e a d y b e e n a l l o w e d , t h e r e f o r e , t h e a s s e s s e e i s e nt i t l e d t o e x e m p t i o n u n d e r s e c t i o n 1 0 ( 2 3 C ) ( v i ) a n d , t h e r e f o r e , t h e i n c o me o f t h e a s s e s s e e s t a n d s e x e m p t e d . 6 . S o f a r a s t h e d i s a l l o w a n c e m a d e b y t h e l d . A s s e ss i n g O f f i c e r u n d e r s e c t i o n 4 0 ( a ) ( i a ) o f t h e I n c o m e T a x A c t i s c o n c e r n ed , i t i s n o t e d t h a t s i n c e t h e i n c o m e o f t h e a s s e s s e e i s e x e m p t u n d e r s e c t i o n 1 0 ( 2 3 C ) ( v i ) , ITA Nos. 25/PAT/2018 A.Y. 2014-2015 & ITA Nos. 26/PAT/2018 A.Y. 2009-2010 Bihar Combined Entrance Competitive Examination Board, Patna 4 t h e r e f o r e , a n y d i s a l l o w a n c e m a d e u n d e r s e c t i o n 4 0 ( a) ( i a ) b y t h e l d . A s s e s s i n g O f f i c e r w i l l o n l y a d d t o t h e i n c o m e o f t he a s s e s s e e , w h i c h o t h e r w i s e i s e x e m p t u n d e r s e c t i o n 1 0 ( 2 3 C ) a s s t a t e d a b o v e . T h e r e f o r e , t h e d i s a l l o w a n c e m a d e b y t h e l d . A s s e s s i n g O f f i c e r w i l l n o t c r e a t e a n y t a x l i a b i l i t y o f t h e a s s e s s e e . I n v i e w o f t h i s , t h e i m pu g n e d o r d e r o f t h e l d . C I T ( A p p e a l s ) i s s e t a s i d e a n d t h e a d d i t i o n s m a d e b y t h e l o w e r a u t h o r i t i e s a r e d e l e t e d . 7 . I n t h e r e s u l t , b o t h t h e a p p e a l s o f t h e a s s e s s e e a r e a l l o w e d . O r d e r p r o n o u n c e d i n t h e o p e n C o u r t o n J u n e 1 3 , 2 0 2 2. Sd/- Sd/- (Rajesh Kumar) (Sanjay Garg ) Accountant Member Judicial Member Kolkata, the 13 th day of June, 2022 Copies to : (1) Bihar Combined Entrance Competitive Examination Board, IAS Bhawan, Near Airport, Patna-800014 (2) Assistant Commissioner of Income Tax (Exemptions), Patna (3) Commissioner of Income Tax (Appeals)-1, Patna; (4) Commissioner of Income Tax, (5) The Departmental Representative (6) Guard File TRUE COPY By order Assistant Registrar, Income Tax Appellate Tribunal, Kolkata Benches, Kolkata Laha/Sr. P.S.